Escalating protests have forced India's Tata Motors to halt production of what is billed as the world's cheapest car.

Tata officials say workers were told not to report Friday to its plant in Singur, in the eastern state of West Bengal.

The Indian auto-maker says it is assessing the situation after police escorted hundreds of workers out of the factory Thursday, amid angry protests by farmers demanding proper compensation for their land.

Last week, Tata officials threatened to move the factory out of West Bengal if the protests continued.

The plant is set to roll out the first $2,500 Nano cars by October. Tata Motors plans to manufacture 250,000 of the cars each year.